NIKON PRECISION INC.

450 mm Lithography Development Update

Hamid Zarringhalam

Executive Vice President

Nikon Precision Inc. 2

Overview

• 450 mm Motivation

• The Path Forward

• Litho Requirements

• Nikon 450 mm Program

• Summary

Nikon Precision Inc. 3

1,000

10,000

100,000

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10,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Transistor Count

Demand Keeps Growing

Demand for transistors and devices will drive Si demand

Ref: Gartner Q1’14, ITU, ARM * 10 year growth 2003-2013

• Growth in mobility followed by

IoT will drive continued growth

for transistors

• …which in turn will drive device

and Si growth

Ref: KITGRU (For Intel at ISSCC), Wagner Consulting

0

2,000

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10,000

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1985 1990 1995 2000 2005 2010 2015

Silic

on

de

man

d (

mill

ion

inch

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ear

)

≦4inch

5inch

6inch

8inch

12inch

18inch

Silicon6% Growth*in 10 years

2020IoT Age

Application30B devicesconnected

2012

6B units

Nikon Precision Inc. 4

450 mm Motivation

• Moore’s Law has enabled tremendous growth through scaling and

transistor cost reduction

• To maintain this trend, combination of scaling and wafer size change will

ultimately be needed to keep costs in check – as done historically

Ref: VLSI Research 4/4/14

Wafer size change will be needed to maintain Moore’s Law

Increasingly Complex Devices Downward Pricing

Nikon Precision Inc. 5

450 mm: Economics and Technology

• 450 mm is about economics – 30% die cost saving

Economics Technology

Wafer Area +2.25X and

Effective Chip Area +2.4X: • Reduces increase in per unit area

process costs associated with the

technology evolution

Greater Economies of Scale for

Chip Manufacturing: • Boost property, plant, equipment

(PPE) and employee productivity,

and reduce associated costs

Stimulate Industry Creativity and

Innovation: • Designers have the chance to think

outside of the box

Opportunities for Invention and

Expanded Collaboration: • Tooling, automation,

IC manufacturing processes,

green tech, etc.

• Also presents tremendous opportunities for innovation

Nikon Precision Inc. 6

Lessons Learned at 300 mm

• Industry focus and management required for successful transition

• R&D investment must be optimized and shared across the chain

• Must avoid false starts experienced with 300 mm

• Alignment on industry timing is imperative

2 peaks caused 300 mm to cost 9 x 200 mm

Charts: Ref: VLSI Research

300 mm took about 20 years for payback

Nikon Precision Inc. 7

Is 450 mm Affordable?

• Expected 450 mm development cost ~$14B best case

• Assuming 3.8% average revenue growth rate for equipment companies,

payback occurs 22 years after initial spending…

Ref: VLSI Research

Payback equivalent to 300 mm if development spending is in check

Nikon Precision Inc. 8

Payback: 22 years from initial funding…sound familiar?

Comparison – Boeing 787 Dreamliner

• A massive, globally-coordinated supply chain effort to design and

build – in order to achieve 20% efficiency improvements

Image courtesy Boeing

• Program start: 2004

• Development cost: $15B

• First commercial flight:

• Planned: May 2008

• Actual: October 2011

• Plane sales needed to break even: 2150 units

• Net order received (mid 2013): 979 (almost half way there…)

• Boeing manufacturing capacity: 120 (now)

• Estimated year to break even: ~ 2025

Nikon Precision Inc. 9

Effective management essential in balancing risk and reward

Transition Management

• Timing Alignment

• Initial statements calling for pilot lines as early as 2013…now “latter part of the

decade” for 450 mm

• Industry consensus should be reached “soon” to keep “latter part of the decade”

intact

• Must avoid the double peak…

• R&D Spending and Risk Management

• Simultaneous development of 300 and 450 mm technology

• Sharing risk/reward between device makers and equipment suppliers

• Collaboration on standards, components, etc.

• Importance of G450C:

• Focused on optimizing timing, cost, consensus building, risk sharing, and

collaboration

• Doing a good job in coordinating and communication

Nikon Precision Inc. 10

450 mm Litho Requirements

• Extending 193i, proven core technology, provides solid foundation

• Wafer size transition creates the opportunity to develop innovative

technologies to ensure litho meets die cost reduction goals

Must simultaneously satisfy scaling and wafer size transition requirements

Productivity (m2/hr >300 mm)

Optimized Footprint

Cost (< gained productivity)

Performance Overlay, imaging, focus, and defectivity

meet aggressive scaling roadmap

450 mm litho readiness through ArF immersion extension

Nikon Precision Inc. 11

Lithography Technology Trends

40

30

20

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

50

1/2

pit

ch

[n

m]

DRAM (1/2pitch)

NAND (1/2pitch)

Logic (M1 1/2Pitch)

3D NAND (1/2pitch)

ArFi(SE) ArFi (SADP/LELE)

DSA (assist to ArFi and EUVL)

EUVL (NA0.33 SADP or NA>0.4 SE) EUVL (SE)

450 mm 450 mm

3D NAND, TSV etc.

ArFi (SAQP/LE ) 3

Scaling

Wafer Size Increase

Integration

Nikon Precision Inc. 12

Nikon Lithography Product Roadmap

~ CY2013 CY2014 CY2015 CY2016 CY2017

ArF

Immersion

ArF

Dry

ArF

Immersion

450 mm Development Patterning Shipping

THP: 96 shots SMO: Single Machine Overlay MMO: Mix-and-Match Overlay

S621D S622D

S320F

Pilot Line

Tool

Platform Upgrade For Immersion/Dry Extension

S630D

S3xxF

HVM

Tool

THP 220 WPH

SMO 3.0 nm

MMO 6.0 nm

THP 230 WPH

SMO 2.0 nm

MMO 5.0 nm

THP 220 WPH

SMO 2.0 nm

MMO 3.5 nm

THP 250 WPH

SMO 1.7 nm

MMO 2.5 nm

Enabling 450 mm HVM at the latter part of the decade

Nikon Precision Inc. 13

Some Say: Benefit from 450 Lithography is Limited

Some don’t see the benefits…

300 450

Poor overlay ?

Low productivity ?

Large and Heavy

Wafer Stage

Reduced acceleration

Decreased stiffness

Added heat dissipation

Nikon Precision Inc. 14

Opportunities for Innovation

Cost

Innovation

Ultra-high

Productivity

Collaboration Reliability/Uptime Productivity & Yield

Advanced Stage Increased Throughput Defectivity Reduction

World-class

Accuracy

Minimized Aberrations Enhanced Overlay and AF Source Mask Optimization

0.1

1

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100

1995 2000 2005 2010 2015 2020

Ove

rlay

nm

g-line

i-line

KrF

ArF

ArF Imm

EX12S302

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S310S609 S610

S620

S621

S622

S320

S630

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ip T

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200mm

300mm

S202S203

S205S207

S208

S210

S620

S621

S622

S630

Nikon innovation will meet new process node requirements in either

environment

Nikon Precision Inc. 15

July 2013

Nikon 450 mm Program

February 2014

April 2014

• Customer orders in place

• Several tools undergoing

manufacturing at our factory

• Advanced litho patterning for

G450C in 2014

And now??

Nikon Precision Inc. 16

Nikon program progressing as planned

450 mm Patterning is Underway

• Nikon development continues per committed plans

• Patterning 450 mm wafers for G450C from Kumagaya

started as scheduled

• Nikon 450 mm immersion scanner will ship to Albany on

time in April 2015

Nikon Precision Inc. 17

Nikon 450 mm will be ready when the industry makes transition

Summary

• Motivations for next wafer size transition are present – economics

and opportunity for innovation

• Industry consensus and commitment for HVM start are paramount –

should be done “soon” to intercept “latter part of the decade”

• Nikon innovations in immersion extension will meet litho process

requirements regardless of wafer size

• Nikon 450 mm program is progressing on schedule and per

commitments made

• 450 mm litho patterned wafers are already here – patterning for

G450C started

• Nikon 450 mm immersion scanner will ship to G450C in Albany on

schedule in April 2015

NIKON PRECISION INC.